Steps to convincing angel investors to invest in your business

Written By Steps To Faculty Published August 13th, 2010

Times are getting tougher and you need more money in your business. How can you resolve this? By getting an angel investor to buy shares in your business in exchange for a board seat. Given the tough competition out there are many other business owners are vying for angel funds also, you need a game plan. The following are excellent steps to take when convincing an angel investor to invest in your company.

Step 1 Know private equity

To convince an angel investor to invest in your business, you should understand what is private equity as a unique category of investment. It is suitable for investment by early stage entrepreneurs as they are better placed compared to private investors “angels”. There can also be professional venture capitals in form of partnerships as private equity owners.

Step 2 Have a plan

YOu should also create a suitable business plan that elaborates the competitive advantages of your business. Any entrepreneur who wants to raise money from the private equity must have a clear definition of the competitive landscape of the business and how their business solutions have a clear advantage in the market.This is also what angel investors love to hear as they see how they will get back their return.

Step 3 Go a step further

If you want to convince angel investors to invest in your business is by understanding the fact that having a good idea is not always the ultimate solution of winning private investors. You should provide proof that the concept for the venture that you have choosen will be successful and how it will be successful. Be specific at this step.

Step 4 Get some professional help

Raising capital through the private angel investors requires you to incur some expense in the capital. To raise capital more efficiently you should hire professionals in the process of getting an angel investor to review your business and help you determine how to make your firm more solid.

Step 5 Showcase

Industry experience is important and valuable to angel investors. Showcase your expertise in the industry your business is in. Find commonalities between your experience and that of the angel investor to show that you can work with the investor to make your business even more profitable.

Remember getting an angel investor is a long-term commitment in your business and in your future. Please visit stepsto.com for more great business advice.


Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.